Did 3AC Founders REALLY Spend $50 Million on a Yacht While Owning $3.5 Billion?
The collapse of Three Arrows Capital (3AC) sent shockwaves through the crypto world. Now, allegations are surfacing that add insult to injury. Did 3AC founders, Kyle Davies and Su Zhu, really spend $50 million on a luxury yacht while owing billions to creditors? The details emerging from bankruptcy filings paint a disturbing picture.
The $50 Million Yacht Allegation
A case in point is the latest information about the two founders of Three Arrows Capital (3AC) – Kyle Davies and Su Zhu. Apparently, the two put a $50 million down... on a yacht! This allegation comes amid serious financial turmoil for the now-bankrupt firm. Court filings reveal Three Arrows Capital founders Su Zhu and Kyle Davies may have purchased a $50 million yacht with borrowed funds.
3AC's Massive Debt: $3.5 Billion Owed
The alleged yacht purchase is particularly galling considering the massive debts 3AC accrued. According to the company’s bankruptcy filings, 3AC owes $3.5 billion to 27 companies, including $2.3 billion to Genesis Global Trading. The figures were revealed in a 1,157-page court filing document that was released. Three Arrows Capital owes $3.5 billion to its creditors. A 1,157-page affidavit drafted by liquidator Russell Crumpler and published by Three Arrows Capital’s (3AC) restructuring firm Teneo reveals several details about the situation.
Where Did the Money Come From?
The big question is: where did the money for this alleged purchase come from? The filings also accuse the two... of mismanagement and questionable financial practices. The idea that borrowed funds – funds ultimately belonging to creditors – may have been used for such a lavish purchase is sparking outrage. Founders of bankrupt Three Arrows Capital hedge… Founders of the beleaguered crypto lending and borrowing firm Three Arrows Capital (3AC), spent $50 million as a down payment for a luxury yacht and another S$ 48.8
The Fall of 3AC: A Quick Recap
Three Arrows Capital managed a crypto fund worth a reported $10 billion in March, but filed for bankruptcy on July 1. What went wrong? “Matters appear to have gone wrong in April or May 2025, when 3AC was reported to have spent between USD $200 to $600 million to purchase ‘Luna,’” the filing says.
What's Next for 3AC and its Founders?
The legal proceedings surrounding 3AC's bankruptcy are ongoing. The implications of these allegations, including the alleged $50 million yacht purchase, are likely to be significant for Kyle Davies, Su Zhu, and the future of crypto regulation.